Canada Disability Savings Act

Marginal note:Canada Disability Savings Bonds

• 7 (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary

  • (a) for each year after the year in which the plan is entered into; and

  • (b) for the year in which the plan is entered into and for each of the previous 10 years

    • (i) that is after 2007,

    • (ii) during which the beneficiary was resident in Canada, and

    • (iii) for which a Canada Disability Savings Bond has not previously been paid.

• Marginal note:Terms and conditions

  (1.1) A Canada Disability Savings Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

• Marginal note:Amount of bond

  (2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is

  • (a) $1,000, if the beneficiary is

    • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the phase-out income for the particular year,

    • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to the phase-out income for the particular year, or

    • (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

  • (b) the amount determined by the formula set out in subsection (4), if the beneficiary is

    • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year, or

    • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year.

• Marginal note:Family income

  (3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

• Marginal note:Formula

  (4) For the purposes of paragraph (2)(b), the formula is as follows:

  $1,000 - [$1,000 × (A - B)/(C - B)]

  where

  A

  is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii);

  B

  is the phase-out income for the particular year; and

  C

  is the first threshold for the particular year.

• Marginal note:Rounding of amounts

  (5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them.

• Marginal note:No determination for January

  (6) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established.

• Marginal note:Beneficiary born in December

  (7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

• (8) [Repealed, 2010, c. 12, s. 28]

• Marginal note:Lifetime cap

  (9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime.